Asian Markets: Commodities and automakers boost market
Shares in Asia climbed higher Tuesday with the Nikkei Index adding 0.6 percent to close at 10,077. In Hong Kong, the Hang Seng Index rose 0.8 percent, ending the day at 21,467 and in China, the Shanghai Composite closed at 2,936 – up 1.4 percent.
Japanese steelmakers were buoyed by Goldman Sachs' upgrading of the sector. Nippon Steel Corp. (NISTY) soared 6.2 percent and JFE Holdings Inc. (JFEEF) climbed 4.8 percent. Kobe Steel Ltd. rose 2.5 percent.
The Nikkei's best performer of the day was Pioneer Corp. (PNCOF), which spiked 11 percent as Citigroup Inc. changed its rating on the company's shares to "sell."
In Hong Kong, automaker Geely Automobile Holdings Ltd., (GELYF) surged 5.1 percent on its announcement that sales had doubled for September. Commodity producers were on the rise with mammoth offshore oil producer Cnooc Ltd. (petro) rising 3.1 percent, and PetroChina Co. (PTR) gaining 2.5 percent. Jiangxi Copper Ltd. (JIXAY) added 2 percent.
In Hong Kong IPO news, Shenguan Holdings Group Ltd., which manufacturers edible sausage casings, skyrocketed 40 percent for the day after increasing as much as 54 percent during the trading session.
Wynn Macau Ltd., which went public last week, had a bumpy day today but ended in positive territory -- up 1.1 percent. The casino sector suffered a case of the jitters after officials in Macau said they agree that the size of the gambling industry should be controlled to some extent. According to the Wall Street Journal, Macau's government said in a statement, that the island may raise the gambling age from 18 to 21 and ban slot machines from residential areas. On this news SJM Holdings (SJMHF) descended 3.7 percent and Melco International Development Ltd. (MDEVF) plunged 4.3 percent.
In China, shares in energy companies plowed ahead with China Shenhua Energy Co. (CUAEF) gaining 2.7 percent and China Coal Energy (CCOZF) increasing 2.3 percent. Carmakers also cruised forward with SAIC Motor jumping 2.6 percent and Changan Automobile adding 1.6 percent. As many have predicted, China's demand for cars has continued to increase. According to the China Association of Automobile Manufacturers, sales of passenger cars rose 83.6 percent from September a year earlier.
Chongqing Department Store Co. continued it's upward trajectory jumping to its 10 percent daily limit for a second day in a row. It recently bought New Century Department Store Co., which analysts expect will increase its profits. So it seems that China's buying spree isn't restricted to holiday shopping by reveling citizens who are now back at work – now buying shares instead of consumer products.